Action dismissed

Press, 19 July 1989, Page 21

Action dismissed

PA Wellington The receivers of the sharebroker, National Pacific Securities, will have to take their claim for $6.7 million against eight former partners of the broking firm, Renouf Partners, to a full hearing, the High Court has ruled. In dismissing an application for summary judgment against the partners, Mr Justice Greig said he was not convinced the plaintiff was bound to succeed in the amount of

damages claimed. He said he was not satisfied there was no defence to the claims. . He said the defendants had made counterclaims. The action relates to a December, "1986, agreement under which National Pacific Corporation bought a half share in Renouf Partners with a consequent name change to National Pacific Securities. National Pacific Securities has since been renamed Allcott-Tyler Investments by the

receivers. Named as defendants were Douglas St John, a former Stock Exchange president, Rex Pearson; Brian Avery; John Carpenter; Duncan Priest; Timothy Mabin; Peter Lynds, and Gavin Duffy. The claim was based on a shortfall in projected profit after the take-over on which the sale price was based, the cost of straightening up the brokers’ accounts, and an alleged shortfall in the value of assets sold.